Corn and soybeans are higher early Tuesday, while wheat is lower. Livestock mixed.
Kent Beadle with Paradigm Futures says corn is extending gains for a 5th session still in recovery mode after the panic liquidation tied to tariffs.
He says corn fundamentals dictate the market should retest the recent highs as export inspections were a marketing year high on Monday for corn at 71.6 million bu.
Traders are expecting a slight increase in exports and ethanol grind in the March WASDE and Beadle says that is warranted just looking at the market data.
However, last month USDA punted and left the market disappointed and he’s not ruling that out again.
South American production numbers will also be interesting because private firms have come down on corn and soybean production but USDA has been slow playing their cuts.
Soybeans are trying to recover after a lower close on Monday that was tied to South American harvest pressure and the implosion in the soybean oil market.
Canola ended limit down yesterday due to China invoking 100% tariffs on Canadian canola meal and oil and that drug down the soybean complex.
Wheat futures are setting back after an up day on Monday seeing profit taking and spread unwinding.
Monday saw some short covering and weather concerns supporting futures but the Kansas City futures ran into chart resistance.
Cattle futures opened strong on Tuesday and then turn mixed keeping one eye on the stock market.
Cattle held up well on Monday with the melt down in the financial markets supported by strong cash, tight numbers and strong demand.
Beadle says that market has been resilient as should stay that way as we get into the best demand period of the year, grilling season.
Lean hog futures ended higher Monday as well but have run up into chart resistance and are consolidating early Tuesday.
Beadle says hogs have had a nice recovery off the lows with the delay in tariffs on Mexico but he says the trade situation may need to be resolved for speculators to push the market much further.
